Management Report Corporación América Airports S.A.

The board of directors of Corporacion América Airports S.A. (the “Company”) submits the Consolidated Financial Statements for the fiscal year ended December 31, 2017 in accordance with Luxembourg applicable laws and regulations.

General Overview

Corporación América Airports S.A., formerly known as A.C.I. Airports International S.à r.l., was incorporated under the laws of the Grand Duchy of Luxembourg (“Luxembourg”) on December 14, 2012. The Company owns no assets other than its direct and indirect ownership of the issued share capital of other intermediate holding companies for all of our operating subsidiaries.

Prior to our initial public offering, we were 100% controlled by ACI Airports S.à r.l., a holding company incorporated in Luxembourg (the “Majority Shareholder”), which is 100% owned by ACI Holding S.à r.l., a holding company also incorporated in Luxembourg (“ACI Holding”). The Majority Shareholder currently controls 82.1% of our common shares.

The following diagram reflects a simplified summary of our current organizational structure:

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History and development of the Company´s business

We have been operating since 1998 and have become a leading global airport concession operator.

 In 1998, as part of the AA2000 consortium, we were awarded the national and international public bid conducted by the Argentine Government for the concession rights related to the operation of 33 airports in Argentina, including the two largest airports, the Ministro Pistarini International Airport (“Ezeiza Airport”), located at Ezeiza, Buenos Aires, and the Jorge Newbery Aeroparque Airport (“Aeroparque Airport”), located in Buenos Aires.

 In 2001, as part of the Aeropuertos del Neuquén S.A. (“NQN”) consortium, we were awarded the concession to operate Aeropuerto de Neuquén (“Neuquén Airport”), our 34th airport in Argentina.

 In 2002, our subsidiary Armenia International Airports CJSC (“AIA”) was awarded the concession to operate the Zvartnots International Airport (“Zvartnots Airport”), located 12 kilometers from downtown Yerevan, Armenia’s capital.

 In 2003, in a public auction conducted by the Uruguayan Government, we purchased the shares of Puerta del Sur S.A. (“Puerta del Sur”), owner of the concession that operates the General Cesáreo Berisso International Airport (“Carrasco Airport”) in Carrasco, Uruguay, located 19 kilometers from downtown Montevideo, Uruguay’s capital.

 In 2004, as part of the Terminal Aeroportuaria de Guayaquil S.A. (“TAGSA”) consortium, we were awarded the concession to operate the José Joaquín de Olmedo International Airport (“Guayaquil Airport”), located five kilometers from downtown Guayaquil, Ecuador.

 In 2007, we executed an amendment to the Zvartnots Airport concession agreement to include Shirak Airport in Gyumri (“Shirak Airport”), the second largest civil airport in Armenia.

 In 2008, in a private transaction, we acquired all of the equity interests of Consorcio Aeropuertos Internacionales S.A. (“CAISA”), which owns the concession that operates the Carlos A. Curbelo Airport (“Punta del Este Airport”) located in Maldonado, by Punta del Este, Uruguay.

 In 2008, as part of the consortium Aeropuerto de Bahía Blanca S.A. (“BBL”), we were awarded the concession to operate Aeropuerto de Bahía Blanca (“Bahía Blanca Airport”), our 35th airport in Argentina.

 In 2011, as part of the consortium Aeropuertos Andinos del Perú S.A. (“AAP”), we were awarded the concession to operate six principal airports in southern Peru (the ‘‘AAP Airports’’). Currently, we operate five of the six airports that are part of the AAP concession agreement.

 In 2011, as part of the consortium Aeropuertos Ecológicos de Galápagos S.A. (“ECOGAL”), we were awarded the concession to operate the Seymour Airport 4, rue de la Grêve, L-1643 Luxembourg - +352 26 25 82 74 www.corporacionamericaairports.com 3

(“Galapagos Airport”), located in Baltra Island, Galapagos Archipelago, our second airport in Ecuador.

 In 2011, as part of the consortium ICASGA, we were awarded the concession to operate the International Airport of São Gonçalo do Amarante (“Natal Airport”), located in Natal, Brazil.

 In 2012, pursuant to an agreement between AA2000 and the Argentine province of Santiago del Estero, we began operating the Termas de Río Hondo Airport, our 36th airport in Argentina.

 In 2012, as part of the consortium ICAB, we were awarded the concession to operate the Presidente Juscelino Kubitschek International Airport (“Brasilia Airport”), located 11 kilometers from downtown Brasilia, Brazil’s capital.

 In 2012, we formed A.C.I. Airports International S.à r.l. to hold, either directly or indirectly, our interests in various companies that own our airport concessions.

 In 2014, we acquired controlling interests in the companies that own the Aeroporto Galileo Galilei di Pisa (“Pisa Airport”) located in Pisa, Italy, and the Aeroporto di Firenze (“Florence Airport,” and together with Pisa Airport, the “Italian Airports”) located in Florence, Italy, through a number of private acquisitions with former shareholders as well as the consummation of two public tender offers. In 2015, we merged the two companies that operated the Italian Airports to form Toscana Aeroporti S.p.A. (“TA”), a company publicly listed on the Milan Stock Exchange (Borsa Italiana) and of which we own 51.1% of the issued and outstanding common stock. The concessions for the Pisa Airport and the Florence Airport have been transferred to TA.

 In 2014, we executed an amendment to the concession agreement of the Carrasco Airport extending the term by 10 years to 2033.

 In 2015, we completed the Reorganization.

 In 2015, we completed the Brazilian Consolidation.

 In 2015, as part of the Reorganization, we completed the dispositions of Latin Exploration S.A. (“Latin Exploration”) and its subsidiary Compañía General de Combustibles S.A., and Helport S.A.

 In 2016, as additional steps in the Reorganization, we completed the dispositions of Helport do Brasil S.A. and Hidroaconcagua S.A.

 In 2016, we completed the disposition of Corporación América Europa.

 In 2017, we completed the Conversion and renamed our company Corporación América Airports S.A.

 In 2017, as part of the AA2000 consortium, we were awarded the concession rights related to the operation of the El Palomar Airport (“El Palomar Airport”), located in the province of Buenos Aires, our 37th airport in Argentina.

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 In 2018 we acquired an additional 4.5% in TA, increasing our ownership to 55.7% of its issued and outstanding common stock

The following table lists our concessions by country, together with their commencement date and extension details (if any):

CAAP Current Effective Number of Concession Concessoin Extensoin Country Concessoin Ownership Airports Start Date End Date Details Argentina AA2000 81.3% 35(1) 1998 2028 Extendable for 10 years(2) NQN 74.1% 1 2001 2021 Extendable for 5 years(2) BBL 81.1% 1 2008 2033 Extendable for 10 years(2) Italy TA (SAT)(3) 55.7% 1 2006 2046 — (2014)(4) TA (ADF)(3) 55.7% 1 2003 2043 — (2014)(5) Brazil ICASGA 99.9%(6) 1 2012(7) 2040 5 years ICAB 51.0% 1 2012(8) 2037 5 years Uruguay Puerta del Sur 100.0% 1 2003 2033(9) — CAISA 100.0% 1 1993 2019(11) — (2008)(10) Ecuador TAGSA 50.0% 1 2004 2024 — ECOGAL 99.9% 1 2011 2026 — Armenia AIA 100.0% 2 2002 2032 Option to renew every 5 years (12) Peru AAP(13) 50.0% 5 2011 2036 Extendable 20 2071 Total 52 ——————————- (1) Includes Termas de Rio Hondo Airport, which is operated by AA2000 but is pending certain regulatory approvals to be included in the AA2000 Concession Agreement. (2) Subject to certain terms and conditions, including governmental approval. (3) Both SAT and ADF have been merged into TA, of which we own a 55.7% equity interest. (4) We began operating the Pisa Airport in 2014. (5) We began operating the Florence Airport in 2014. (6) Our effective ownership is 99.97%. (7) The concession for the Natal Airport was awarded in August 2011, which became effective in January 2012. The Natal Airport began operating in June 2014. (8) We began operating the Brasilia Airport in December 2012. (9) Renegotiated extension in 2014. (10) We acquired the shares of CAISA in 2008. (11) We are currently in negotiations with the Uruguayan Government to extend the term of this concession. (12) Renewable at our sole discretion for an indefinite number of 5-year extension periods. (13) AAP’s concession comprises six airports; however, we currently only operate five.

Business overview

We acquire, develop and operate airport concessions. We are the largest private sector airport concession operator in the world based on the number of airports under management and the tenth largest private sector airport operator in the world based on passenger traffic. Currently, we operate 52 airports globally in Latin America, Europe and Eurasia. Since 1998, when we acquired the AA2000 Concession Agreement, we have expanded the environments and

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geographies in which we operate airports by acquiring concessions in Armenia, Uruguay, Ecuador, Peru, Brazil, Italy and additional concessions in Argentina.

We operate some of the largest and most important airports in the countries where we conduct operations, including a large international airport, such as Ezeiza Airport in Argentina, domestic airports, such as Brasilia Airport in Brazil and Aeroparque Airport in Argentina, airports in tourist destinations, such as Bariloche and Iguazu in Argentina, Galapagos Ecological Airport in Ecuador and Florence Airport in Italy, as well as mid-sized domestic and tourist destination airports.

Argentina is our largest and longest established market where we operate and manage 37 of the 56 airports in Argentina’s national airport system, including the Argentina’s two largest airports, Ezeiza and Aeroparque. In each year since we acquired the rights under the AA2000 Concession Agreement, our airports in Argentina have handled over 90.0% of Argentina’s total passenger traffic.

For the year ended December 31, 2017, we had total consolidated revenue of U.S.$1.6 billion, consolidated income from continuing operations of U.S.$66.9 million and Adjusted EBITDA of U.S.$461.6 million, and our airports handled 851,290 total aircraft movements and served 76.6 million total passengers (of which approximately 35.1% were international, approximately 53.9% were domestic and approximately 11.0% were transit passengers). For the year ended December 31, 2016, we had total consolidated revenue of U.S.$1.4 billion, consolidated income from continuing operations of U.S.$38.7 million and Adjusted EBITDA of U.S.$427.2 million, and our airports handled 871,130 total aircraft movements and served 71.8 million total passengers (of which approximately 34.2% were international, approximately 52.8% were domestic and approximately 13.0% were transit passengers). For the year ended December 31, 2015, we had total consolidated revenue of U.S.$1.2 billion, consolidated income from continuing operations of U.S.$6.3 million and Adjusted EBITDA of U.S.$276.6 million, and our airports handled 836,354 total aircraft movements and served 71.0 million total passengers (of which approximately 32.2% were international, approximately 53.8% were domestic and approximately 13.9% were transit passengers).

Our Airports by Country in Which We Operate

Argentina

Our largest operations are in Argentina, where we operate a total of 37 of the 56 airports in the Argentine national airport system, including the two largest airports in Argentina, Ezeiza Airport and Aeroparque Airport.

Our airports are located in 22 of the 23 Argentine provinces and in the City of Buenos Aires and currently serve major metropolitan areas in several Argentine provinces (such as Buenos Aires, Córdoba and Mendoza) and the City of Buenos Aires, tourist destinations (such as Bariloche, Mar del Plata and Iguazú), regional centers (such as Córdoba, Santa Rosa, San Luis, San Juan, La Rioja, Santiago del Estero and Catamarca) and border province cities (such as Mendoza, Iguazú, Salta and Bariloche).

Of the 37 airports we operate in Argentina, 18 have been designated as “international airports” under applicable local law, meaning that they are or may potentially be equipped to receive international flights.

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Passenger traffic

Year Year Ended International Ended Year Ended December or national December December 31, 2015 Airport designation 31, 2017 31, 2016

(in thousands) Aeroparque Internacional, “Jorge Newbery” International 13,920.9 11,661.5 11,052.9 Aeropuerto Internacional de Ezeiza, “Ministro Pistarini” International 9,877.8 9,831.1 9,127.9 Aeropuerto Internacional de Córdoba, “Ing. A. Taravella” International 2,863.7 2,212.9 1,947.8 Aeropuerto de San Carlos de Bariloche International 1,296.6 1,187.1 1,038.7 Aeropuerto Internacional de Mendoza, “El Plumerillo” International 1,762.1 1,086.0 1,351.6 Aeropuerto Internacional de Salta, “Martín Miguel de Güemes” International 1,128.8 972.3 856.5 Aeropuerto de Misiones, “Cataratas del Iguazú” International 999.2 893.9 863.2 Aeropuerto de Neuquén, “Presidente Peron” International 909.7 818.5 774.4 Aeropuerto de Tucumán, “General Benjamin Matienzo” International 559.6 670.1 600.8 Aeropuerto de Comodoro Rivadavia, “Geral. Enrique Mosconi” International 623.5 573.6 577.5 Aeropuerto de San Juan, “Domingo Faustino Sarmiento” National 225.9 379.3 191.0 Aeropuerto de Bahía Blanca, “Comandante Espora” National 416.6 305.5 306.8 Aeropuerto de Rio Gallegos, “Piloto Civil Norberto Fernández” International 262.4 269.1 302.5 Aeropuerto de Jujuy, Gobernador Horacio Guzmán International 268.6 227.0 200.7 Aeropuerto de Resistencia, “José de San Martín” International 317.2 219.1 262.5 Aeropuerto Internacional de Mar del Plata, “Astor Piazzolla” International 295.0 203.0 201.3 Aeropuerto de Posadas, “Libertador General José de San Martín” International 212.2 178.5 178.9 Aeropuerto de Rio Grande International 151.1 142.2 164.8 Aeropuerto Internacional de Formosa, “El Pucu” International 106.6 95.8 96.2 Aeropuerto de San Luis, “Brigadier Mayor César R Ojeda” National 90.9 94.4 65.2 Aeropuerto de Santiago del Estero, “Vcom. Angel de la Paz Aragones” National 99.1 85.0 68.4 Aeropuerto de La Rioja, “Capitán Vicente Almandos Almonacid” National 89.8 63.1 51.7 Aeropuerto de San Rafael, “S.A. Santiago Germano” National 56.9 60.8 47.4 Aeropuerto de Puerto Madryn, “El Tehuelche” National 107.2 53.2 49.3 Aeropuerto de Catamarca, “Coronel Felipe Varela” National 78.6 50.6 44.9

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Passenger traffic

Year Year Ended International Ended Year Ended December or national December December 31, 2015 Airport designation 31, 2017 31, 2016

Aeropuerto de Esquel National 60.3 48.7 45.4 Aeropuerto de Entre Rios, “General Justo José de Urquiza” National 106.3 43.3 38.7 Aeropuerto de Santa Rosa National 49.5 42.3 40.9 Aeropuerto de San Fernando International 46.9 41.7 45.9 Aeropuerto de Viedma, “Gobernador Castello” National 43.4 37.8 34.7 Aeropuerto Termas de Río Hondo National 166.9 17.4 20.3 Aeropuerto de Rio Cuarto, “Área de Material” National 57.5 15.3 1.1 Aeropuerto de General Pico National 4.1 4.1 2.2 Aeropuerto de Reconquista National 4.5 3.0 2.8 Aeropuerto de Malargüe, “Comodoro D Ricardo Salomon” National 1.8 2.9 3.2 Aeropuerto de Villa Reynolds National 0.8 0.6 1.4 Aeropuerto El Palomar National —(1) —(1) —(1) —————————— (1) No information available as we did not operate the El Palomar Airport during the referenced period and given that during such time El Palomar was a military airport.

In Argentina, our main concession is the AA2000 Concession, which accounted for approximately 35.9 million passengers, or 96.4% of the total 37.3 million total passengers we served during the year ended December 31, 2017. Approximately 9.9 million of our passengers were at Ezeiza Airport and 13.9 million at Aeroparque Airport. For the year ended December 31, 2016, the airports under the AA2000 Concession Agreement served 31.5 million passengers of the 32.6 million total passengers we served in the country. Approximately 9.8 million of our passengers were at Ezeiza Airport and 11.7 million at Aeroparque Airport. For the year ended December 31, 2015, the airports under the AA2000 Concession Agreement served 29.6 million of the 30.7 million passengers we served in the country, of which approximately 9.1 million were at Ezeiza Airport and 10.8 million at Aeroparque Airport.

In our Argentina segment, AA2000 represented over 99.6% of our total revenues, 96.4% of our passengers and 94.9% of our air traffic movements in each of these periods. In a consolidated basis, AA2000 represented over 63.2% of our consolidated revenues, 48.6% of our total passengers and 50.0% of our air traffic movements during the year ended December 31, 2017.

In June 2011, Cedicor, the controlling shareholder of CASA, agreed to purchase from SEA 21,973,747 class A shares of AA2000, which represented 8.5% of AA2000’s ordinary capital and voting stock, and 2.5% of its capital stock on a fully-diluted basis (including the preferred shares). In addition, in July 2011, 2,197,375 Class B Shares of AA2000 which represented 0.85% of the ordinary capital and voting stock, and 0.25% of the capital stock of AA2000 on a fully-diluted basis (including the preferred shares), were transferred to Cedicor by Riva. These transactions are still subject to ORSNA authorization. See “Risk Factors—The ORSNA may reject the transactions whereby Cedicor S.A. acquired from Societa per Azioni

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Esercizi Aeroportuali and from Riva S.A.I.I.C.F.A. 8.5% and 0.85% of AA2000’s shares, respectively.”

The Argentine Government owns 15.0% of AA2000’s ordinary share capital and voting stock through its ownership of AA2000’s common shares. In addition, the Argentine Government owns all of AA2000’s preferred shares. Beginning in 2020, the Argentine Government may convert each year preferred shares into common shares up to a maximum of 12.5% of the total initial amount of preferred shares issued to the Argentine Government. In order to exercise its conversion right, the Argentine Government must notify AA2000 of its intention to convert preferred shares and AA2000 will have 30 days from delivery of such notification to redeem those preferred shares before conversion occurs. In addition, AA2000 has the option, but not the obligation, to redeem the preferred shares held by the Argentine Government at any time. The conversion ratio will be based on the price of the common shares at the time of conversion compared to the nominal value of each preferred share, which is AR$1. If AA2000’s common shares are listed on the Buenos Aires Stock Exchange, then the price will be established based on the average traded value of such common shares on the Buenos Aires Stock Exchange during the five trading days prior to the notice of conversion delivered by the Argentine Government to AA2000. If AA2000’s shares are not listed on the Buenos Aires Stock Exchange, the price of such common shares will be established by a third party appointed by the Argentine Government but paid by AA2000. AA2000 has no current plan to list its common shares on the Buenos Aires Stock Exchange. As of December 31, 2017, there were 616,914,353 preferred shares of AA2000 outstanding.

We currently expect that AA2000 will exercise its options to redeem such preferred shares held by the Argentine Government, so that we may maintain our ownership percentage in AA2000. However, if AA2000 does not exercise such right and the Argentine Government exercises the conversion right, our proportional ownership of the common shares of AA2000 will be decreased. The actual impact on our proportional ownership of common shares of AA2000 upon any such conversion will depend upon the price of AA2000 common shares at the time of the conversion.

The following table provides summary data for our operations in Argentina for the periods indicated:

For the Year Ended December 31,(1) 2017 2016 2015 % of % of % of Total Total Total Revenue (in millions of U.S.$) $ 998.6 63.4% $ 840.9 61.5% $ 783.9 66.0% Number of passengers (in millions) 37.3 48.6% 32.6 45.4% 30.7 43.2% Air traffic movements (in thousands) 425.9 49.9% 393.1 47.0% 396.5 45.5%

—————————— (1) We have included information for our three concessions in Argentina: AA2000, Bahía Blanca and Neuquén. We currently own 81.3% of the share capital of AA2000, 81.1% of the share capital of Bahía Blanca, and 74.1% of the share capital of Neuquén.

Our Argentina segment had Adjusted Segment EBITDA of U.S.$315.2 million, U.S.$294.1 million and U.S.$233.3 million, for the years ended December 31, 2017, 2016 and 2015, respectively.

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Italy

In Italy, we operate and manage the Florence Airport and the Pisa Airport through our 51.1% share ownership of TA. TA is the result of the merger of Società Aeroporto Toscano (“SAT”), Galileo Galilei S.p.A. and Aeroporto di Firenze S.p.A. (“ADF”) on June 1, 2015, and is headquartered in Florence. As a result of the merger, Corporación América Italia S.p.A. (“CA Italy”), which is 100% owned by us, has a controlling stake of 55.7% of TA. SAT was incorporated in 1978 and commenced operations at the Pisa Airport in 1980. In 2006, SAT was officially awarded the concession to fully operate the Pisa Airport for 40 years. In 2003, ADF was officially awarded the concession to fully operate Florence Airport for 40 years. After the merger, TA became the owner and operator of both concessions.

The following table provides summary data for our operations in Italy for the periods indicated:

For the Year Ended December 31, 2017 2016 2015 % of % of % of Total Total Total Revenue (in millions of U.S.$) $ 154.5 9.8% $ 141.3 10.3% $ 152.7 12.9% Number of passengers (in millions) 7.9 10.3% 7.5 10.5% 7.2 10.2% Air traffic movements (in thousands) 77.4 9.1% 76.2 9.1% 73.8 8.5%

Of the approximately 7.9 million total passengers in the TA airports during the year ended December 31, 2017, approximately 5.2 million were in Pisa Airport and 2.7 million were in the Florence Airport. Our Italy segment had Adjusted Segment EBITDA of U.S.$29.8 million for the year ended December 31, 2017. For the year ended December 31, 2016, of the approximately 7.5 million total passengers in the TA airports, approximately 5.0 million were in Pisa Airport and 2.5 million in the Florence Airport. Our Italy segment had Adjusted Segment EBITDA of U.S.$27.3 million for the year ended December 31, 2016. For the year ended December 31, 2015, of the 7.2 million total passengers in the TA airports, approximately 4.8 million were in the Pisa Airport and 2.4 million in the Florence Airport. Our Italy segment had Adjusted Segment EBITDA of U.S.$25.7 million for the year ended December 31, 2015.

TA is listed on the Italian Stock Exchange under the ticker TYA. The year-end price for 2017 was €16.2 per share, representing a market cap of €300.6 million. Corporate capital amounted to €30.7 million, which is comprised of 18.6 million ordinary shares with no nominal value.

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Brazil

In Brazil, we operate the Brasilia Airport through our 50.98% indirect ownership of ICAB, a subsidiary of Inframerica. Inframerica was originally owned by Infravix and CASA. In 2015, we and the Majority Shareholder acquired Infravix’s shareholding in Inframerica. In 2015, pursuant to our Reorganization, CAAP acquired CASA’s stake in Inframerica. As of the date of this annual report, we own 99.96% of the equity interests of Inframerica, which in turn holds 51.0% of the equity interests of ICAB. Infraero is the owner of the remaining 49.0% interest in ICAB.

We also operate the Natal Airport through our 99.97% ownership of ICASGA. ICASGA was originally owned by Infravix (50.0%) and CASA (50.0%). In 2015, we acquired from Infravix a 49.95% interest in ICASGA and the Majority Shareholder acquired the remaining 0.05% interest in ICASGA. See, “Presentation of Financial and Certain Other Information— Brazilian Consolidation.” As of the date of this annual report, we own 99.97% of ICASGA and the Majority Shareholder owns the remaining 0.03%.

The following table provides summary data for our operations in Brazil for the periods indicated:

For the Year Ended December 31,(1) 2017 2016 2015 % of % of % of Total Total Total Revenue (in millions of U.S.$) $ 128.8 8.2% $ 127.0 9.3% $ 0.8 0.1% Number of passengers (in millions) 19.4 25.3% 20.4 28.3% 22.5 31.7% Air traffic movements (in thousands) 185.2 21.7% 198.8 23.8% 230.6 26.5% —————————— (1) Although for the year ended December 31, 2015, the results of operations of ICASGA and Inframérica were consolidated only as from their respective dates of acquisition, i.e. December 11, 2015 and December 30, 2015, respectively. We have included 100% of operational information of both ICASGA and ICAB, with respect to number of passengers and air traffic movements, for the year ended December 31, 2015. The revenue information for the year ended December 31, 2015 includes only the consolidated revenue of ICASGA and ICAB as from their respective dates of acquisitions.

For the year ended December 31, 2017, of the approximately 19.4 million total passengers in Brazil, approximately 17.0 million were in the Brasilia Airport and 2.4 million were in the Natal Airport. For the year ended December 31, 2017, our Brazil segment had Adjusted Segment EBITDA of U.S.$16.8 million. For the year ended December 31, 2016, of the approximately 20.4 million total passengers in Brazil, approximately 18.0 million were in the Brasilia Airport and 2.3 million were in the Natal Airport. For the year ended December 31, 2016, our Brazil segment had Adjusted Segment EBITDA of U.S.$3.8 million. For the year ended December 31, 2015, of the 22.5 million passengers in our Brazilian airports, approximately 20.0 million were in the Brasilia Airport and 2.6 million were in the Natal Airport. For the year ended December 31, 2015, our Brazil segment had Adjusted Segment EBITDA of U.S.$(71.8) million.

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Uruguay

Our operations in Uruguay consist of the operation and maintenance of the two main Uruguayan airports that receive commercial flights. We own 100% of Puerta del Sur, the holder of the concession agreement through the execution of a comprehensive management agreement with the Uruguayan Ministry of Defense (“Carrasco Concession Agreement”) to operate the Carrasco Airport and 100% of Consorcio Aeropuertos Internacionales S.A. (“CAISA”) the holder of the concession agreement (“Punta del Este Concession Agreement,” and together with the Carrasco Concession Agreement, the “Uruguayan Concession Agreements”) with the Uruguayan Ministry of Defense to operate the Punta del Este Airport. The Carrasco Airport, located near Montevideo, is Uruguay’s largest airport in terms of passenger traffic and serves as the country’s primary gateway for international travel. We also own TCU S.A. (“TCU”) through which we operate the cargo terminal at the Carrasco Airport.

The following table provides summary data for our operations in Uruguay for the periods indicated:

For the Year Ended December 31,(1) 2017(1) 2016(2) 2015(3) % of % of % of Total Total Total Revenue (in millions of U.S.$) $ 110.0 7.0% $ 97.8 7.2% $ 93.1 7.8% Number of passengers (in millions) 2.3 3.0% 2.0 2.9% 1.8 2.6% Air traffic movements (in thousands) 33.7 4.0% 32.4 3.9% 31.8 3.6%

—————————— (1) Includes revenues for TCU and reflects intersegment adjustments of U.S.$6.3 million. (2) Includes revenues for TCU and reflects intersegment adjustments of U.S.$5.7 million. (3) Includes revenues for TCU and reflects intersegment adjustments of U.S.$6.1 million.

For the year ended December 31, 2017, of the approximately 2.3 million total passengers in Uruguay, approximately 2.1 million were in the Carrasco Airport and 0.2 million were in the Punta del Este Airport. Our Uruguay segment had Adjusted Segment EBITDA of U.S.$55.2 million for the year ended December 31, 2017. For the year ended December 31, 2016, of the approximately 2.0 million total passengers in Uruguay, approximately 1.9 million were in the Carrasco Airport and 0.2 million were in the Punta del Este Airport. For the year ended December 31, 2016, our Uruguay segment had Adjusted Segment EBITDA of U.S.$53.7 million. For the year ended December 31, 2015, of the 1.8 million passengers in our Uruguayan airports, approximately 1.7 million were in the Carrasco Airport and 0.1 million were in the Punta del Este Airport. For the year ended December 31, 2015, our Uruguay segment had Adjusted Segment EBITDA of U.S.$49.8 million.

The Punta del Este Concession Agreement expires on March 31, 2019. However, CAISA is currently conducting negotiations with the Uruguayan Government to extend the original term until 2033. Although the discussions with the Uruguayan Government are ongoing and there can be no assurances that we will be successful in being granted an extension to the concession agreement, our preliminary discussions with the Uruguayan Government have been positive.

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Ecuador

Our operations in Ecuador consist of the operation and maintenance of the Guayaquil Airport and the Galapagos Airport. The following table provides summary data for our operations in Ecuador for the periods indicated:

For the Year Ended December 31,(1) 2017 2016 2015 % of % of % of Total Total Total Revenue (in millions of U.S.$) $ 85.3 5.4% $ 85.3 6.2% $ 79.0 6.7% Number of passengers (in millions) 4.1 5.4% 4.2 5.9% 4.1 5.8% Air traffic movements (in thousands) 78.2 9.2% 87.6 10.5% 90.9 10.4%

——————————- (1) Although for the years ended December 31, 2016 and 2015, the results of operations of the our associate ECOGAL are not consolidated, we have included 100% of operational information of ECOGAL, with respect to number of passengers and air traffic movements, for the years ended December 31, 2017, 2016 and 2015. The revenue information for the years ended December 31, 2017, 2016 and 2015 includes only the consolidated revenue of TAGSA, our other concession in the Ecuador segment.

For the years ended December 31, 2017, 2016 and 2015, our Ecuador segment had Adjusted Segment EBITDA of U.S.$26.5 million, U.S.$28.0 million and U.S.$23.1 million, respectively.

We own 50.0% of TAGSA, which operates and maintains the Guayaquil Airport in the City of Guayaquil, pursuant to the terms and conditions of a concession agreement (“Guayaquil Concession Agreement”) among TAGSA, Autoridad Aeroportuaria de Guayaquil (“AAG”), and the M.I. Municipalidad de Guayaquil (“Municipality of Guayaquil”). The Guayaquil Concession Agreement is scheduled to expire in July 2024, as agreed in the third amendment to the Guayaquil Concession Agreement.

We own 99.9% of ECOGAL, which operates and maintains the Galapagos Airport located at the Galapagos Islands which is an Ecuadorian province located 605 miles west of the Ecuadorian coast, and which were declared a National Park in 1959. The Galapagos Airport is located in the Baltra Island, within a short distance from Santa Cruz Island, which holds the most populous city of the province and the city with the best tourist infrastructure in the province (the city of Puerto Ayora). The duration of the Galapagos Concession Agreement is 15 years as from the compliance of the conditions precedent set forth therein; such conditions were satisfied on July 15, 2011.

The Galapagos Airport has been recognized as the first ecological and sustainable airport in the world by the U.S. Green Building Council. The airport terminal was entirely planned, designed and built taking into account its relationship with the surrounding environment to reduce its environmental impact. The terminal also received Leadership in Energy and Environmental Design (LEED) certification, GOLD level.

Additionally, on June 23, 2015, the Galapagos Airport received the Carbon Footprint Reduction accreditation from the Airport Carbon Accreditation program. The program, implemented by Airports Council International Europe, is aimed at evaluating and recognizing airports that make outstanding efforts to reduce and compensate for greenhouse gas emissions. The Galapagos Airport is the first airport in South America and the second one in Latin America to receive a carbon footprint reduction accreditation. Currently, we are working to obtain the next 4, rue de la Grêve, L-1643 Luxembourg - +352 26 25 82 74 www.corporacionamericaairports.com 13

level of accreditation, Optimization which is the third level of the four possible accreditation levels.

Armenia

We own 100% of AIA which owns the concession from the Armenian Government (the “Armenian Concession Agreement”) to operate and maintain the only two operating airports for scheduled commercial flights in Armenia: the Zvartnots Airport and the Shirak Airport.

The following table provides summary data for our operations in Armenia for the periods indicated:

For the Year Ended December 31, 2017 2016 2015 % of % of % of Total Total Total Revenue (in millions of U.S.$) $ 94.5 6.0% $ 73.2 5.4% $ 74.7 6.3% Number of passengers (in millions) 2.6 3.3% 2.1 2.9% 1.9 2.7% Air traffic movements (in thousands) 22.0 2.6% 18.7 2.2% 18.0 2.1%

For the years ended December 31, 2017, December 31, 2016 and 2015, our Armenia segment had Adjusted Segment EBITDA of U.S.$41.2 million, U.S.$28.1 million and U.S.$25.3 million, respectively.

For the year ended December 31, 2017, of the approximately 2.6 million total passengers in Armenia, approximately 2.5 million were in the Zvartnots Airport and 0.1 million were in the Shirak Airport. For the year ended December 31, 2016, of the approximately 2.1 million total passengers in Armenia, approximately 2.1 million were in the Zvartnots Airport and 0.02 million were in the Shirak Airport. For the year ended December 31, 2015, of the approximately 1.9 million passengers in our Armenian airports, approximately 1.8 million were in the Zvartnots Airport and approximately 0.04 million were in the Shirak Airport.

Peru

Our operations in Peru consist of the operation, use and maintenance of five airports in southern Peru, including the Arequipa Airport, which is the third largest airport in Peru in terms of passenger traffic, through our 50.0% participation in AAP. AAP was incorporated by public deed dated November 22, 2010, for the sole purpose of acting as the concessionaire of the AAP Concession Agreement. We account for the results of operations of AAP using the equity method and therefore, such results are not included in the total revenue for our operations.

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The following table provides summary data for our operations in Peru for the periods indicated:

For the Year Ended December 31,(1) 2017 2016 2015 % of % of % of Total Total Total Revenue (in millions of U.S.$) N/A N/A N/A N/A N/A N/A Number of passengers (in millions) 3.1 4.0% 3.0 4.2% 2.7 3.9% Air traffic movements (in thousands) 30.9 3.6% 29.6 3.5% 29.4 3.4%

——————————- (1) Although for the years ended December 31, 2017, 2016 and 2015, the results of operations of the our associate AAP are not consolidated, we have included 100% of operational information of AAP with respect to number of passengers and air traffic movements for the years ended December 31, 2017, 2016 and 2015.

For the years ended December 31, 2017 and December 31, 2016, our Peru segment had a negative Adjusted Segment EBITDA of U.S.$(15.3) million and U.S.$(0.4) million, respectively. For the year ended December 31, 2015, our Peru segment had an Adjusted Segment EBITDA of U.S.$0.8 million.

AAP is an associate corporation which was incorporated in 2010, 50.0% owned by CAAP and 50.0% owned by Andino Investment Holding (a private Peruvian logistics conglomerate). Pursuant to the by-laws of AAP, major corporate decisions, including the amendment of its by- laws, approval of corporate reorganizations and any increase or reduction of share capital, may be made only with the consent of all shareholders. The AAP Concession Agreement grants AAP the rights for the management and operation of the following six airports in southern Peru for a period of 25 years:

 Rodriguez Ballón International Airport—Arequipa

 Coronel FAP Alfredo Mendívil Duarte Airport—Ayacucho

 Inca Manco Capac International Airport—Juliaca

 Padre Almadiz International Airport—Puerto Maldonado

 Coronel FAP Carlos Ciriani Santa Rosa International Airport—Tacna

 Andahuaylas Airport—Apurimac

Although included under the AAP Concession Agreement, the Andahuaylas Airport has not ever been operated by AAP, as the Peruvian Government does not own the land, which is a condition for the Peruvian Government to deliver such airport to AAP for operation under the AAP Concession Agreement.

Our airports currently serve major metropolitan areas in five southern Peruvian provinces: Arequipa, Puno, Ayacucho, Tacna and Puerto Maldonado. Of the five airports that we currently operate under the AAP Concession Agreement, four have been designated as international airports under Peruvian law, which means that they are or may potentially be equipped to receive international flights, although they mostly receive domestic flights.

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Our Airports

Our strategically most important airports are described below:

Ezeiza Airport (EZE)

Ezeiza Airport is our largest airport in terms of contribution to revenue and Argentina’s second largest airport in terms of passenger traffic. During the year ended December 31, 2017, Ezeiza Airport served 9.9 million total passengers, representing approximately 12.9% of our total passenger traffic. Of the total passengers, 91.0% were international, 7.0% were domestic and 2.0% were transit passengers. During the year ended December 31, 2017, Ezeiza Airport accounted for 66,916 total air traffic movements, which represented 7.8% of all air movements in the airports we operate. During the year ended December 31, 2016, Ezeiza Airport served 9.8 million total passengers, representing approximately 13.7% of our total passenger traffic. Of the total passengers, 90.7% were international, 7.4% were domestic and 2.0% were transit passengers. During the year ended December 31, 2016, Ezeiza Airport accounted for 68,839 movements, which represented 8.2% of all air movements in the airports we operate. During the year ended December 31, 2015, Ezeiza Airport served 9.1 million total passengers, representing approximately 12.8% of our total passenger traffic. Of the total passengers, 92.6% were international, 6.7% were domestic and 0.7% were transit passengers. During the year ended December 31, 2015, Ezeiza Airport accounted for 66,834 movements, which represented 8.0% of all air movements in the airports we operate.

A number of commercial airlines, including Aerolíneas Argentinas, Air Canada, Air France, Alitalia, American Airlines, British Airways, Delta Airlines, Lufthansa, LATAM Airlines Group and United Airlines, operate international flights to and from Ezeiza Airport.

Ezeiza Airport is located approximately 22 kilometers (13.7 miles) from downtown Buenos Aires, the capital city of Argentina. Approximately 3 million people live within the city itself and approximately 12 million people live within the city and its suburbs (the “Greater Buenos Aires Area”). The City of Buenos Aires is home to most of Argentina’s largest companies in a wide variety of industries, as well as several major universities. The Greater Buenos Aires Area represents one-third of the Argentine population and produces 40% of Argentina’s GDP.

Ezeiza Airport operates 24 hours a day. The total area of the airport’s premises is approximately 3,475 hectares (374.0 million square feet). The airport has two operating runways, one with a length of 3,300 meters (10,824 feet) and the other with a length of 3,105 meters (10,170 feet). The airport’s approximate runway capacity is 60 air traffic movements per hour. Ezeiza Airport has nine taxiways, which cover 526,300 square meters (5.7 million square feet), and two types of aprons (remote and operative), with an area of approximately 656,290 square meters (7.1 million square feet). The airport has three terminals, A, B and C, which cover an area of 103,000 square meters (1.1 million square feet). The parking lot is approximately 125,460 square meters (1.4 million square feet), with the capacity to accommodate 4,182 vehicles.

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Aeroparque Airport (AEP)

Aeroparque Airport is Argentina’s largest airport in terms of passenger traffic. During the year ended December 31, 2017, Aeroparque Airport served a total of 13.9 million passengers, which accounted for approximately 18.2% of all passengers served by our airports. In the year ended December 31, 2017, Aeroparque Airport accounted for 134,532 total air traffic movements, which accounted for 15.8% of all air traffic movements in the airports we operate. During the year ended December 31, 2016, Aeroparque Airport served a total of 11.7 million passengers, which accounted for approximately 16.2% of all passengers served by our airports. In the year ended December 31, 2016, Aeroparque Airport accounted for 121,882 total air traffic movements, which accounted for 14.6% of all air traffic movements in 2016 in the airports we operate. During the year ended December 31, 2015, Aeroparque Airport served a total of 11.0 million passengers, which accounted for approximately 15.6% of all passengers served by our airports. In the year ended December 31, 2015, Aeroparque Airport accounted for 120,492 total air traffic movements, which accounted for 14.4% of all air traffic movements in 2015 in the airports we operate.

The principal airlines operating at Aeroparque Airport are Aerolíneas Argentinas, Austral–Cielos del Sur, LAN Airlines, LAN Argentina, TAM Linhas Aereas and VRG Linhas Aereas S.A. Aeroparque offers flights to all domestic airports and certain international routes to Uruguay, Brazil, Chile, Paraguay, Bolivia and Peru. Beginning in 2018, Aeroparque Airport will offer domestic flights only (other than flights to Montevideo) and all international routes to be transferred from Aeroparque Airport to Ezeiza Airport.

Aeroparque Airport is located two kilometers (1.24 miles) from downtown Buenos Aires. Aeroparque Airport does not operate from 12:30 a.m. to 5:30 a.m. in compliance with ICAO regulations. Such regulations set forth restrictions on airports located within cities to minimize noise pollution. The total area of the airport premises is approximately 129.6 hectares (13.8 million square feet). The runway has a length of 2,100 meters (7,185 feet) and an approximate runway capacity of 57 air traffic movements per hour. The Aeroparque Airport has one taxiway which covers 71,495 square meters (769,565 square feet) and 207,650 square meters (2.2 million square feet) of remote and operative aprons. The airport’s terminal covers approximately 95,570 square meters (1.0 million square feet). The parking lot is 78,755 square meters (847,711 million square feet), with the capacity to accommodate 2,456 vehicles.

Florence Airport (FLR)

During the year ended December 31, 2017, Florence Airport served a total of 2.7 million passengers, which accounted for approximately 3.5% of all passengers served by our airports. Florence Airport accounted for 35,490 total air traffic movements, which accounted for 4.2% of all air traffic movements in the year ended December 31, 2017. During the year ended December 31, 2016, Florence Airport served a total of 2.5 million passengers, which accounted for approximately 3.5% of all passengers served by our airports. Florence Airport accounted for 35,645 total air traffic movements, which accounted for 4.3% of all air traffic movements in the year ended December 31, 2016 in the airports we operate. During the year ended December 31, 2015, Florence Airport served a total of 2.4 million passengers, which accounted for approximately 3.4% of all passengers served by our airports. Florence Airport accounted for 34,269 total air traffic movements, which accounted for 3.9% of all air traffic movements in the year ended December 31, 2015 in the airports we operate.

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Florence Airport is located near the city of Florence, Italy. The metropolitan area served by the Florence Airport has approximately one million inhabitants. The airport serves the tourist market in Florence, as well as the nearby industrial market. Even though some low-cost carriers operate in the airport, Florence Airport is mostly dedicated to full-cost carriers, such as Lufthansa, Alitalia and Air France. This premium service also correlates with the premium retail offerings at the airport.

In the last six years, the airport has seen an average 6.2% annual passenger growth rate. However, the airport is constrained by its current infrastructure. Florence Airport cannot service long-haul flights given the short length of its runway. Additionally, since the runway was built in the direction of the prevailing wind, Florence Airport has a relatively high number of flight cancellations due to adverse weather conditions. Since the merger of ADF with SAT, flights have been rerouted to Pisa Airport when possible to avoid passenger loss. Passengers can also be rerouted to Bologna Airport, if needed. Plans are underway to build a new terminal and runway. The new infrastructure should allow Florence Airport to reach its full potential and complement Pisa Airport’s offerings.

On November 3, 2015, we received the technical approval by ENAC of our 2014-2029 master plan for Florence Airport. The master plan is subject to the environmental impact assessment, which was approved by the Ministry of the Environment on December 28, 2017. The urban planning assessment procedure is currently underway.

Pisa Airport (PSA)

During the year ended December 31, 2017, Pisa Airport served a total of 5.2 million passengers, which accounted for approximately 6.8% of all passengers served by our airports. Pisa Airport accounted for 41,860 total air traffic movements, which accounted for 4.9% of all air traffic movements in the year ended December 31, 2017. During the year ended December 31, 2016, Pisa Airport served a total of 5.0 million passengers, which accounted for approximately 7.0% of all passengers served by our airports. Pisa Airport accounted for 40,601 total air traffic movements, which accounted for 4.9% of all air traffic movements in the year ended December 31, 2016 in the airports we operate. During the year ended December 31, 2015, Pisa Airport served a total of 4.8 million passengers, which accounted for approximately 6.8% of all passengers served by our airports. Pisa Airport accounted for 39,515 total air traffic movements, which accounted for 4.5% of all air traffic movements in the year ended December 31, 2015 in the airports we operate.

The Pisa Airport is located in the city of Pisa, Italy, and is one of the main entryways to the Toscana and Liguria regions of Italy. The Pisa Airport is easily accessible by train with a rail link to Pisa’s central train station and Florence’s Santa Maria Novella train station. There is a people mover under construction, which should further the connectivity of the airport and sustain the airport’s future growth.

Low-cost carriers dominate in terms of passengers and aircraft movements at the Pisa Airport. Historically, the airport has invested in its infrastructure, allowing it to operate long-haul intercontinental flights and cargo flights. Pisa Airport is the entryway for foreigners entering the Toscana region (incoming traffic). Further investments in capex will allow the airport to reach six million passengers in the short term.

On October 24, 2017, ENAC approved and signed our 2015-2028 master plan for Pisa Airport.

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Brasilia Airport (BSB)

During the year ended December 31, 2017, the Brasilia Airport served a total of 17.0 million passengers, which accounted for approximately 22.2% of all passengers served by our airports. The Brasilia Airport accounted for 166,200 total aircraft movements, which accounted for 19.5% of all aircraft movements, in the year ended December 31, 2017. During the year ended December 31, 2016, the Brasilia Airport served a total of 18.0 million passengers, which accounted for 25.1% of all passengers served by our airports. In addition, the Brasilia Airport accounted for 180,086 air traffic movements, which represented 21.5% of all air traffic movements in the year ended December 31, 2016, in the airports we operate. During the year ended December 31, 2015, the Brasilia Airport served a total of 20.0 million passengers, which accounted for 28.1% of all passengers served by our airports. In addition, the Brasilia Airport accounted for 208,140 air traffic movements, which represented 25.4% of all air traffic movements in the year ended December 31, 2015, in the airports we operate.

The Brasilia Airport is located in the Brazilian capital city of Brasilia. The concession for the Brasilia Airport is owned by ICAB, a subsidiary of Inframerica. As of the date hereof, we own 99.9% of the equity interests of Inframerica, which holds 51.0% of the equity interests of ICAB. Infraero is the owner of the remaining 49.0% interest in ICAB. Infraero is a state-owned company affiliated with the Civil Aviation Secretariat of Brazil and it currently operates 59 airports in Brazil and owns a 49.1% stake in 5 other airports (including Brasilia) that it does not directly operate. The Brasilia Airport is Brazil’s third largest airport in terms of passenger traffic and serves 42 domestic routes and 5 international routes. Because of its geographic location in the central region of the country and its location in the federal capital of Brazil, the Brasilia Airport is one of the only airports with direct and daily flights to all 26 Brazilian state capitals. The Brasilia Airport also offers international routes to and from the United States, Argentina, Portugal, the Dominican Republic and Panama.

The Brasilia Airport is the only airport in South America capable of operating two runways simultaneously, which provides the largest runway capacity in Brazil.

The principal airlines operating at the Brasilia Airport are LATAM Airlines Group, Gol Transportes Aéreos, Avianca and Azul which collectively represent 97% of the airport’s traffic. Other principal airlines include American Airlines, TAP, Copa Airlines and Passaredo.

The Brasilia Airport is located 12 kilometers (8.5 miles) from downtown Brasilia. The Brasilia Airport operates twenty-four hours a day. The total area of the airport premises is approximately 4.4 hectares (473,612 square feet). The two runways have a length of 3,300 meters (approximately 10,826 feet) and 3,200 meters (approximately 10,498 feet) and an approximate runway capacity of 53 air traffic movements per hour. The airport has two parallel taxiways which can operate simultaneously, and which cover 148,500 square meters (approximately 1,598,441 square feet) and 144,000 square meters (approximately 1,550,003 square feet), respectively, and which can be expanded without the need for significant new expenditures. The airport’s terminal covers approximately 110,000 square meters (1,184,300 square feet), of which 14,290 square meters (approximately 153,816 square feet) is commercial area. The parking lot is 100,000 square meters (1,076,931 square feet), with the capacity to accommodate 3,354 vehicles.

Carrasco (MVD)

Carrasco Airport, located near Montevideo, is Uruguay’s largest airport in terms of passenger traffic and serves as the country’s primary gateway for international travel. Carrasco

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Airport has the capacity to handle up to 4.5 million passengers annually. It currently serves regional centers, tourist destinations and certain major cities throughout the Americas and Europe.

During the year ended December 31, 2017, the Carrasco Airport served a total of 2.1 million passengers, which accounted for approximately 2.8% of all passengers served by our airports. In addition, the Carrasco Airport accounted for 24,507 aircraft movements, which represented 2.9% of all air traffic movements in the year ended December 31, 2017 in the airports we operate. During the year ended December 31, 2016, the Carrasco Airport served a total of 1.9 million passengers, which accounted for 2.6% of all passengers served by our airports. In addition, the Carrasco Airport accounted for 23,333 air traffic movements, which represented 2.8% of all air traffic movements in the year ended December 31, 2016, in the airports we operate. During the year ended December 31, 2015, the Carrasco Airport served a total of 1.8 million passengers, which accounted for 2.4% of all passengers served by our airports. In addition, the Carrasco Airport accounted for 22,747 air traffic movements, which represented 2.6% of all air traffic movements in the year ended December 31, 2015 in the airports we operate.

In 2003, our wholly-owned subsidiary Cerealsur S.A. acquired 100% of the outstanding shares of Puerta del Sur, the holder of the Carrasco Concession Agreement. The original concession agreement was for a period of 20 years ending in November 2023, which term has recently been extended for an additional period of 10 years, until 2033.

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Regulatory and Concessions Framework

Introduction

We hold concessions in Argentina, Italy, Brazil, Uruguay, Ecuador, Armenia and Peru and are subject to regulations in each one of these countries. The following table sets out aspects of our concession agreements, along with their respective term and extension provisions, and the corresponding regulatory governmental authority.

Concession Governmental Term and agreement authority extension provisions Argentina AA2000 Concession Argentine Government; 30-year term (ending February 13, Agreement ORSNA 2028); may be extended an additional 10 years, subject to authorization by the Argentine Government. NQN Concession Government of the 20-year term (ending October 24, Agreement Province of Neuquén; 2021). Concession may be extended ORSNA for 5 years upon governmental approval. BBL Concession Municipality of Bahía 25-year term (ending May 22, 2033). Agreement Blanca; ORSNA Concession may be extended for 10 years upon governmental approval. Italy Pisa Concession ENAC 40-year term (ending December 7, Agreement 2046). Florence Concession ENAC 40-year term (ending February 10, Agreement 2043). Brazil Natal Concession Brazilian ANAC 28-year term (ending January 24, Agreement 2040); may be extended for an additional 5 years if necessary to reestablish economic equilibrium. Brasilia Concession Brazilian ANAC 25-year term (ending July 24, 2037); Agreement may be extended for an additional 5 years if necessary to reestablish economic equilibrium. Uruguay Carrasco Concession Defense Ministry 20-year term with 10-year extension Agreement already approved (30-year total, ending November 20, 2033). Punta del Este Defense Ministry 36-year term (ending March 31, Concession Agreement 2019). We are currently under negotiations with local government to extend this concession. Ecuador Guayaquil Concession AAG; Municipality of 20-year and 5-month term (ending Agreement Guayaquil July 27, 2024). Galapagos Concession DGAC; STAC 15-year term (ending July 6, 2026). Agreement Armenia Armenian Concession Armenian Government; 30-year term (ending June 8, 2032), Agreement GDCA with option to extend the term of the agreement by 5-year periods if in good standing. Peru AAP Concession MTC 25-year term (ending January 5, Agreement 2036); may be extended at request of AAP at least 3 years prior to the termination date; the term of the concession cannot exceed 60 years.

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OPERATING AND FINANCIAL REVIEW AND PROSPECTS

Our discussion and analysis of our results of operations and financial condition are based upon our Audited Consolidated Financial Statements, which have been prepared in accordance with IFRS. Our operating and financial review and prospects should be read in conjunction with our Audited Consolidated Financial Statements, the accompanying notes thereto and other financial information appearing elsewhere in this annual report

Operating Results

Factors Affecting Our Results of Operations

A number of factors have a significant impact on our business and results of operations, the most important of which are regulations, passenger traffic levels and air traffic operations, fluctuations in exchange rates in the currencies in which we operate, and our capital investment plans.

Regulations

Fees for aeronautical services are established under the terms of the relevant concession agreement, and the regulatory framework of the governmental authority in each jurisdiction where we operate. Our concession agreements establish or otherwise regulate the rates that we may charge to aircraft operators and passengers for aeronautical services, including fees for landing and transit of aircraft, departing passenger fees, and fees for aircraft parking. Some of our concession agreements also allow us to charge additional fees to passengers for services such as security and reduced mobility assistance, among others. These fees are invoiced to users of our airport infrastructure, principally airlines using our airports, either from their general revenue or as collected directly from airline passengers.

Passenger Traffic Levels and Air Traffic Operations

A significant portion of our revenue depends directly or indirectly on the level of passenger traffic at our airports and the number of aircraft movements (takeoffs and landings) conducted in the airports we operate. Aeronautical revenue within our airports is directly dependent on aircraft movements. In addition, our commercial revenues depend significantly on the number of passengers passing through terminals, as well as on the nature of the traffic. For example, international passenger traffic generates more commercial revenue than domestic traffic.

From 2016 to 2017, air traffic increased 6.7% in terms of number of passengers, 1.8% in terms of aircraft movements and 8.1% in terms of cargo volume handled. From 2015 to 2016, air traffic increased 1.1% in terms of number of passengers, decreased 4.0% in terms of aircraft movements and increased 2.6% in terms of cargo volume handled.

Fluctuations in Exchange Rates in the Currencies in which We Operate

Our primary foreign currency exposure gives rise to market risks associated with exchange rate movements of the Argentine peso, the Brazilian real, the euro, the Uruguayan peso and the Armenian dram against the U.S. dollar; and the Euro against the Armenian dram. See “— Quantitative and Qualitative Disclosure about Market Risk—Exchange Rate Risk.”

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Our Capital Investment Plans

We believe that we have identified transformative growth opportunities at our Brasilia, Ezeiza and Florence Airports. At our Brasilia Airport, we are in the final development planning stages of a significant expansion of the terminal to accommodate additional commercial area, which will include retail stores, entertainment, a food court, upscale restaurants and services. In addition, at Ezeiza Airport, we are developing a project for the terminal area that includes new passenger buildings, apron expansions and a new ground access and parking. The arrivals and departures terminals will accommodate extensive commercial areas, including duty free shops, retail stores, entertainment, restaurants and coffee shops and several other services. In partnership with the Italian Government, we have developed an investment plan for Florence Airport to invest approximately U.S.$351.1 million in capital expenditures for intangible assets during the period from 2017 until 2022. For the year ended December 31, 2017, we have invested U.S.$2.7 million in the Florence Airport.

Our Segments

We have identified seven reportable segments: Argentina, Italy, Brazil, Uruguay, Ecuador, Armenia and Peru. See Note 4 to our Audited Consolidated Financial Statements and “Presentation of Financial and Certain Other Information—Adjusted Segment EBITDA.”

Our Associates

AAP is an associate which was incorporated in 2010, 50.0% owned by CAAP and 50.0% owned by Andino Investment Holding (a private Peruvian logistics conglomerate). We record our 50.0% ownership interest in the shareholders’ equity of AAP in “Investments in associates” and we account for the results of operations of AAP using the equity method as “share of loss in associates.”

Under the terms of the concession agreement for the operation of the Galapagos Airport (the “Galapagos Concession Agreement”), the net profits generated by ECOGAL must be transferred entirely to the Dirección General de Aviación Civil. Because we are not entitled to receive dividends from the operations of ECOGAL, we record our percentage ownership interest in the shareholders’ equity of ECOGAL in “Investments in associates” and we account for our results of operations for ECOGAL under the equity method as “share of loss in associates.”

Certain of the operational information provided below with respect to passenger composition, cargo volume and aircraft movements includes results of AAP and ECOGAL. Revenue and expense information on a per segment basis for Ecuador includes the results of TAGSA, but does not include the results of ECOGAL.

Our Passenger Traffic, Cargo Volume and Aircraft Movements

Our revenue is highly dependent on levels of air traffic. Passenger traffic in our airports is composed of international, domestic and transit passengers. During the years ended December 31, 2017, 2016 and 2015, approximately 53.9%, 52.8% and 53.8%, respectively, of the passengers were domestic passengers, approximately 35.1%, 34.2% and 32.2%, respectively, of our passengers were international passengers, and approximately 11.0%, 13.0% and 13.9%, respectively, of our passengers were transit passengers. The majority of our aircraft movements consist of commercial airline traffic, which drives a substantial portion of our passenger traffic. General aviation, which includes private jets, is the second largest category of aircraft movements, but does not significantly contribute to passenger traffic. Cargo is generally transported through 4, rue de la Grêve, L-1643 Luxembourg - +352 26 25 82 74 www.corporacionamericaairports.com 23

commercial aircraft movements, and to a lesser extent, through cargo flights. The principal factor affecting our cargo volume is macroeconomic conditions in the local and regional markets. The following table sets forth certain statistical data relating to our total passenger traffic, cargo volume and aircraft movements for the periods indicated:

Years ended December 31, % change % change against against 2017 prior year 2016 prior year 2015 Domestic Passengers (in millions) 41.3 8.9% 37.9 (0.9)% 38.2 International Passengers (in millions) 26.9 9.4% 24.6 7.4% 22.9 Transit passengers (in millions) 8.4 (9.6)% 9.3 (6.0)% 9.9 Total passengers (in millions) 76.6 6.7% 71.8 1.1% 71.0 Cargo volumes (in thousands of tons) 389.8 8.1% 360.6 2.6% 351.4 Total aircraft movements (in thousands) 851.3 1.8% 836.4 (4.0)% 871.1

Our Passenger Traffic, Cargo Volume and Aircraft Movements, per Segment

Set forth below is a summary (including our unconsolidated operations) of the passenger composition, cargo volume and aircraft movements for each of our segments:

For the Year Ended December 31, 2017 % of Total 2016 % of Total 2015 % of Total Argentina Domestic Passengers (in millions) 22.4 54.3% 19.2 50.7% 19.0 49.6% International Passengers (in millions) 13.6 50.6% 12.2 49.5% 11.4 49.6% Transit passengers (in millions) 1.2 14.3% 1.2 12.7% 0.3 3.5% Total passengers (in millions) 37.3 48.6% 32.6 45.4% 30.7 43.2% Cargo volume (in thousands of tons) 232.0 59.5% 210.8 58.5% 202.6 57.7% Aircraft movements (in thousands) 425.9 50.0% 393.1 47.0% 396.5 45.5% Italy Domestic Passengers (in millions) 1.8 4.4% 1.8 4.7% 1.9 4.8% International Passengers (in millions) 6.1 22.5% 5.7 23.2% 5.4 23.4% Transit passengers (in millions) 0.0 0.0% 0.0 0.0% - 0.0% Total passengers (in millions) 7.9 10.3% 7.5 10.5% 7.2 10.2% Cargo volume (in thousands of tons) 10.8 2.8% 10.5 2.9% 8.9 2.5% Aircraft movements (in thousands) 77.4 9.1% 76.2 9.1% 73.8 8.5% Brazil(1) Domestic Passengers (in millions) 11.7 28.4% 11.6 30.7% 12.3 32.2% International Passengers (in millions) 0.5 2.0% 0.7 2.9% 0.8 3.5% Transit passengers (in millions) 7.1 84.7% 8.0 86.0% 9.4 95.4% Total passengers (in millions) 19.4 25.3% 20.4 28.3% 22.5 31.7% Cargo volume (in thousands of tons) 54.5 14.0% 48.7 13.5% 50.4 14.3% Aircraft movements (in thousands) 185.2 21.8% 198.8 23.8 230.6 26.5% Uruguay Domestic Passengers (in millions) 0.0 0.0% 0.0 0.0% 0.0 0.0% International Passengers (in millions) 2.3 8.4% 2.0 8.2% 1.8 8.0% Transit passengers (in millions) 0.0 0.2% 0.0 0.2% 0.0 0.1% Total passengers (in millions) 2.3 3.0% 2.0 2.8% 1.8 2.6% Cargo volume (in thousands of tons) 28.2 7.2% 29.0 8.0% 30.9 8.8% Aircraft movements (in thousands) 33.6 4.0% 32.4 3.9% 31.8 3.6% Armenia Domestic Passengers (in millions) 0.0 0.0% 0.0 0.0% 0.0 0.0% International Passengers (in millions) 2.6 9.5% 2.1 8.6% 1.9 8.4% 4, rue de la Grêve, L-1643 Luxembourg - +352 26 25 82 74 www.corporacionamericaairports.com 24

Transit passengers (in millions) — 0.0% — 0.0% — 0.0% Total passengers (in millions) 2.6 3.3% 2.1 2.9% 1.9 2.7% Cargo volume (in thousands of tons) 22.2 5.7% 17.2 4.8% 10.0 2.9% Aircraft movements (in thousands) 22.0 2.6% 18.7 2.2% 18.0 2.1% Ecuador(2) Domestic Passengers (in millions) 2.2 5.3% 2.3 5.9% 2.4 6.2% International Passengers (in millions) 1.9 6.9% 1.8 7.5% 1.6 7.1% Transit passengers (in millions) 0.1 0.8% 0.1 1.1% 0.1 1.0% Total passengers (in millions) 4.1 5.4% 4.2 5.9% 4.1 5.8% Cargo volume (in thousands of tons) 37.1 9.5% 39.3 10.9% 43.2 12.3% Aircraft movements (in thousands) 78.2 9.2% 87.6 10.5% 90.9 10.4% Peru(3) Domestic Passengers (in millions) 3.1 7.5% 3.0 7.9% 2.7 7.1% International Passengers (in millions) 0.0 0.0% 0.0 0.0% — 0.0% Transit passengers (in millions) — 0.0% — 0.0% — 0.0% Total passengers (in millions) 3.1 4.0% 3.0 4.2% 2.7 3.9% Cargo volume (in thousands of tons) 5.0 1.3% 5.0 1.4% 5.2 1.5% Aircraft movements (in thousands) 29.0 3.4% 29.6 3.5% 29.4 3.4% ——————————- (1) We have included in this table ICAB’s and ICASGA’s operational data for 2015, including prior to the Brazilian Consolidation. (2) We have included ECOGAL’s operational data, although its results of operations are not consolidated. (3) We have included AAP’s operational data, although its results of operations are not consolidated.

Our Revenue from Continuing Operations

We classify our revenue in the following categories: aeronautical revenue, commercial revenue, construction service revenue and other revenue. Our consolidated revenue does not include revenue of our AAP (AAP Airports) or ECOGAL (Galapagos Airport) operations for the years ended December 31, 2017, 2016 and 2015, as they were accounted for under the equity method. In addition, with respect to the year ended December 31, 2015, our consolidated revenue does not include revenues of Inframerica and ICASGA generated prior to December 11, 2015, and December 30, 2015, respectively, as they were accounted for under the equity method.

Our total consolidated revenue for the years ended December 31, 2017, 2016 and 2015 is summarized below:

For the Year Ended December 31, 2017 2016 2015 (in % of (in % of (in % of millions Total millions Total millions Total of U.S.$) Revenue of U.S.$) Revenue of U.S.$) Revenue

Aeronautical revenue 767.0 48.7% 673.5 49.3% 543.2 45.8% Non-aeronautical Revenue Commercial revenue 555.5 35.3% 522.2 38.2% 459.7 38.7% Construction service revenue 250.1 15.9% 165.1 12.1% 178.4 15.0% Other Revenue 2.5 0.2 5.6 0.4% 5.7 0.5% Total consolidated revenue 1,575.2 100.0% 1,366.3 100.0% 1,187.1 100.0%

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Aeronautical Revenue

Aeronautical revenue is derived from the use of our airport facilities by aircrafts and passengers.

Our concession agreements establish or otherwise regulate the rates that we may charge to aircraft operators and passengers for aeronautical services. We charge each departing passenger a fee for the use of our airports which varies depending upon whether the passenger’s flight is an international, regional or domestic flight, and whether the passenger is in transit. Some of our concession agreements also allow us to charge additional fees to passengers for services such as security and reduced mobility assistance, among others. We charge our aeronautical customers fees for aircraft landing and parking, which depend on whether the flight is international or domestic, the maximum take-off weight of the aircraft, the time slot and take-off time, among other factors. International fees are generally higher than domestic or transit fees.

The following table sets forth our aeronautical revenue as well as the percentage of aeronautical revenue represented by each category of aeronautical revenue for the periods indicated:

For the Year Ended December 31, 2017 2016 2015 (in millions % of Total (in millions % of Total (in millions % of Total of U.S.$ Revenue of U.S.$ Revenue of U.S.$ Revenue Passenger use fees 586.4 76.5% 514.2 76.4% 404.4 74.4% Aircraft fees 133.6 17.4% 117.2 17.4% 96.4 17.8% Other 47.0 6.1% 42.1 6.2% 42.4 7.8% Total aeronautical revenue 767.0 100.0% 673.5 100.0% 543.2 100.0%

Non-Aeronautical Revenue

Our Non-Aeronautical Revenue is comprised of commercial revenue, construction service revenue and other revenue.

Commercial Revenue

The majority of our commercial revenue is derived from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers’ revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services.

The following table sets forth our commercial revenue as well as the percentage of commercial revenue represented by each category of commercial revenue for the periods indicated:

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For the Year Ended December 31, 2017 2016 2015 (in millio ns of % of Total (in millions % of Total (in millions % of Total U.S.$ Revenue of U.S.$ Revenue of U.S.$ Revenue Warehouse use fees 190.9 34.4% 187.6 35.9% 166.8 36.3% Duty free shops 68.1 12.3% 64.2 12.3% 72.3 15.7% Rental of Space (including 35.5 6.4% 38.3 7.3% 26.5 5.8% hangars) Parking Facilities 43.3 7.8% 37.1 7.1% 37.3 8.1% Fuel 40.9 7.4% 32.1 6.2% 29.2 6.4% Food and beverage services 26.4 4.8% 26.2 5.0% 13.8 3.0% Advertising 23.1 4.2% 21.7 4.1% 17.4 3.8% Services and retail stores 18.7 3.4% 18.2 3.5% 11.3 2.4% Catering 16.5 3.0% 14.7 2.8% 14.7 3.2% VIP Lounge 21.4 3.9% 14.1 2.7% 9.5 2.1% Walkway Services 9.6 1.7% 10.5 2.0% 10.4 2.3% Other 61.2 11.0% 57.4 11.0% 50.4 11.0% Total commercial revenue 555.5 100.0% 522.2 100.0% 459.7 100.0%

Construction Service Revenue

We treat our investments related to improvements and upgrades to be performed in connection with our concession agreements under the intangible asset model established by IFRIC 12. As a result, we define all expenditures associated with investments required by the concession agreements as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. Additionally, compliance with the committed investments per the concession agreements is mandatory, as well as the fulfillment of the maximum tariff and therefore, in case of a failure to meet any one of these obligations, we could be subject to sanctions and our concessions could be revoked.

Therefore, we recognize revenue and the associated costs of improvements to concession assets in relation with the concessions’ obligations to perform improvements as established in the respective concession agreements. Revenue represents the value of the exchange between ourselves and the respective governmental authorities with respect to the improvements, given that we construct or provide improvements to the airports as obligated under the respective concession agreements, and in exchange, the governmental authorities grant us the right to obtain benefits for services provided using those assets, which are recognized as intangible assets. We recognize the revenue and expense in profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by us in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, we contract third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%. The amounts paid are set at market value.

Other Revenue

Other revenue includes revenue that is not otherwise classified as aeronautical revenue, commercial revenue or construction service revenue.

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Our Revenue by Segment

Set forth below is a summary of the revenue for each of our reportable segments:

For the Year Ended December 31, 2017 2016 2015 (in millions % of Total (in millions % of Total (in millions % of Total of U.S.$ Revenue of U.S.$ Revenue of U.S.$ Revenue Argentina 998.6 63.4% 840.9 61.5% 783.9 66.0% Italy 154.5 9.8% 141.3 10.3% 152.7 12.9% Brazil 128.8 8.2% 127.0 9.3% 0.8 0.1% Uruguay 110.0 7.0% 97.8 7.2% 93.1 7.8% Armenia 94.5 6.0% 73.2 5.4% 74.7 6.3% Ecuador(1) 85.3 5.4% 85.3 6.2% 79.0 6.7% Unallocated 3.4 0.2% 0.8 0.1% 2.9 0.2% Total consolidated revenue(1)(2) 1,575.2 100.0% 1,366.3 100.0% 1,187.1 100.0% ——————————- (4) We account for the results of operations of ECOGAL using the equity method. (5) We account for the result of operations of AAP using the equity method.

Our Expenses from Continuing Operations

Our expenses from continuing operations are cost of services, selling, general and administrative expenses, financial loss, other operating expenses and income tax expense. Other expenses consist of impairment loss and other operating expenses.

For the Year Ended December 31, 2017 2016 2015 (in millions % of Total (in millions % of Total (in millions % of Total of U.S.$ Expenses of U.S.$ Expenses of U.S.$ Expenses Cost of services 1030.0 65.3% 859.1 62.2% 759.2 64.7% Selling, general and administrative expenses 194.2 12.3% 170.9 12.4% 167.2 14.2% Financial loss 302.0 19.1% 273.0 19.8% 199.8 17.0% Other expense 4.8 0.3% 21.5 1.6% 2.7 0.2% Income tax expense 46.9 3.0% 56.4 4.1% 45.0 3.8% Total expenses 1,578.0 100.0% 1,380.8 100.0% 1,173.8 100.0%

Cost of Services

Our cost of services is composed primarily of salaries and social security contributions, construction service cost, maintenance, airport concession fees, the amortization of intangible assets, service fees, cost of fuel, royalties, fees and easements, airport operation costs and other miscellaneous items. The following table sets forth our cost of services, as well as the percentage of cost of services in relation to total cost of services for the periods indicated:

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For the year ended December 31, 2017 2016 2015 (in millions % of Cost (in millions % of Cost (in millions % of Cost of U.S.$ of services of U.S.$ of services of U.S.$ of services Salaries and social security contributions 210.8 20.5% 184.6 21.5% 165.8 21.8% Concession fees 191.9 18.6% 176.5 20.5% 133.8 17.6% Construction service cost 248.6 24.1% 163.7 19.1% 177.0 23.3% Maintenance expenses 145.8 14.2% 126.9 14.8% 125.8 16.6% Amortization and depreciation 100.7 9.8% 89.5 10.4% 64.8 8.5% Services and fees 54.5 5.3% 49.0 5.7% 42.5 5.6% Cost of fuel 27.8 2.7% 19.5 2.3% 21.3 2.8% Taxes 19.5 1.9% 17.5 2.0% 2.7 0.4% Office expenses 17.3 1.7% 15.9 1.8% 9.8 1.3% Provision for maintenance cost 2.3 0.2% 4.7 0.5% 5.4 0.7% Others 10.8 1.0% 11.1 1.3% 10.3 1.4% Total cost of services 1,030.0 100.0% 859.1 100.0% 759.2 100.0%

Selling, General and Administrative Expenses from Continuing Operations

Our selling, general and administrative expenses consist primarily of taxes, salaries and social contributions, amortization and depreciation, utility services, office expenses, repair and replacement provisions, maintenance costs, advertising expenses, insurance costs, aircraft charter service costs, costs related to security, healthcare and firefighters, bad debt charges and other miscellaneous items.

The following table sets forth our selling, general and administrative expenses, as well as the percentage of selling, general and administrative expenses in relation to total selling, general and administrative expenses for the periods indicated:

For the Year Ended December 31, 2017 2016 2015 (in millions % of total (in millions % of total (in millions % of total of U.S.$ SG&A of U.S.$ SG&A of U.S.$ SG&A Taxes 54.9 28.3% 50.9 29.8% 43.2 25.8% Salaries and social security contributions 35.8 18.4% 34.8 20.4% 31.5 18.8% Services and fees 58.5 30.1% 48.1 28.1% 52.5 31.4% Office expenses 11.6 6.0% 10.0 5.9% 10.4 6.2% Amortization and depreciation 7.6 3.9% 7.2 4.2% 7.5 4.5% Maintenance expenses 4.2 2.2% 5.1 3.0% 5.9 3.5% Advertising 3.0 1.6% 2.2 1.3% 3.2 1.9% Insurances 2.3 1.2% 1.4 0.8% 0.5 0.3% Charter services 0.8 0.4% 1.2 0.7% 2.3 1.4% Bad debts recovery (0.3) (0.1)% (2.2) (1.3)% — — Bad debts 7.7 4.0% 2.0 1.2% 2.6 1.6% Others 8.0 4.1% 10.2 6.0% 7.6 4.5% Total selling, general and administrative expenses 194.2 100.0% 170.9 100.0% 167.2 100.0%

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Financial Loss from Continuing Operations

Our financial loss consists primarily of interest expense, net foreign exchange loss, adjustments with respect to our Brazilian operations and other expenses. The following table sets forth our financial income and our financial loss for the periods indicated:

For the Year Ended December 31, 2017 2016 2015 Interest expenses 115.2 118.2 69.2 Foreign exchange transaction expenses 82.3 44.9 125.2 Changes in liability for Brazilian Concessions(1) 98.1 107.4 2.0 Other 6.4 2.4 3.3 Financial loss 302.0 273.0 199.8 —————————— (6) Refers to changes in the liabilities due to passage of time and the contractual adjustment for variations in the Brazilian consumer price index of the fixed commitment under the ICAB Concession Agreement as set forth in Note 9 to our Audited Consolidated Financial Statements. We expect this adjustment to occur in a similar magnitude in the next few years.

Our Expenses by Segment

Set forth below is a summary of our expenses from continuing operations by segment:

For the Year Ended December 31, 2017 2016 2015 (in millions % of Total (in millions % of Total (in millions % of Total of U.S.$ Expenses(1) of U.S.$ Expenses(1) of U.S.$ Expenses(1) Argentina 736.1 59.9% 586.4 56.7% 588.0 63.3% Italy 135.1 11.0% 123.5 11.9% 138.5 14.9% Brazil 132.1 10.8% 123.3 11.9% 0.9 0.1% Uruguay 66.5 5.4% 56.3 5.4% 55.1 5.9% Armenia 65.0 5.3% 56.5 5.5% 61.0 6.6% Ecuador 63.9 5.2% 62.1 6.0% 63.2 6.8% Unallocated 30.3 2.5% 26.7 2.6% 22.3 2.4% Total segment expenses 1,229.0 100.0% 1,034.8 100.0% 929.0 100.0% —————————— (7) Excludes income tax, financial loss, depreciation and amortization.

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Summary Consolidated Results of Operations

The following table sets forth a summary of our consolidated results of operations, as well as the percentage change of each category from the prior year for the periods indicated:

For the Year Ended December 31,

2017 2016 2015 % of Change % Change (in millions against (in millions against (in millions of U.S.$) prior year of U.S.$) prior year of U.S.$) Aeronautical revenue 767.0 13.9% 673.5 24.0% 543.2 Non-aeronautical Revenue Commercial revenue 555.5 6.4% 522.2 13.6% 459.7 Construction service revenue 250.1 51.5% 165.1 (7.5%) 178.4 Other Revenue 2.5 (54.8)% 5.6 (2.8)% 5.7 Total consolidated revenue 1,575.2 15.3% 1,366.3 15.1% 1,187.1

For the Year Ended December 31,

2017 2016 2015

% change % change (in millions against (in millions against (in millions of U.S.$) prior year of U.S.$) prior year of U.S.$) Cost of Services Concession fees 191.9 8.7% 176.5 31.9% 133.8 Amortization and depreciation 100.7 12.4% 89.5 38.2% 64.8 Cost of fuel 27.8 43.0% 19.5 (8.8)% 21.3 Salaries and social security contributions 210.8 14.2% 184.6 11.4% 165.8 Taxes 19.5 11.2% 17.5 547.1% 2.7 Maintenance expenses 145.8 14.9% 126.9 0.9% 125.8 Construction service costs 248.6 51.8% 163.7 (7.5)% 177.0 Services and fees 54.5 11.1% 49.0 15.7% 42.5 Provision for maintenance cost 2.3 (50.5)% 4.7 (13.2)% 5.4 Office expense 17.3 8.6% 15.9 62.8% 9.8 Others 10.8 (2.9)% 11.1 8.8% 10.3 Total Cost of Services 1,030.0 19.9% 859.1 13.3% 759.2

Salaries and Social Security contributions 35.8 2.8% 34.8 10.5% 31.5 Amortization and depreciation 7.6 6.9% 7.2 (4.3)% 7.5 Services and fees 58.5 21.6% 48.1 (8.3)% 52.5 Taxes 54.9 7.8% 50.9 17.9% 43.2 Maintenance expenses 4.2 (17.6)% 5.1 (13.4)% 5.9 Advertising 3.0 36.6% 2.2 (31.4)% 3.2 Office expenses 11.6 16.6% 10.0 (3.7)% 10.4 Insurances 2.3 63.9% 1.4 170.2% 0.5 Charter service 0.8 (28.6)% 1.2 (50.3)% 2.3 Bad debts recovery (0.3) (88.1)% (2.2) N/A — Bad debts 7.7 288.3% 2.0 (23.2)% 2.6 Others 8.0 (22.4)% 10.2 34.1% 7.6

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Total selling, general and administrative expenses 194.2 13.7% 170.9 2.2% 167.2 Reversal of previous impairment/(impairment loss) 3.1 (118.4)% (16.6) N/A — Other operating income 20.0 17.8% 16.9 11.5% 15.6 Other operating expense (4.8) (1.3)% (4.9) 94.9% (2.7) Operating income 369.1 11.3% 331.8 21.3% 273.6 Share of loss in associates (15.8) 1,113.0% (1.3) (98.1)% (69.3) Income before financial results and income tax 353.3 6.9% 330.5 61.8% 204.3 Financial income 62.6 66.7% 37.5 (19.8)% 46.8 Financial loss (302.0) 10.7% (273.0) 36.6% (199.8) Income before income tax expense 113.8 19.7% 95.1 85.7% 51.3 Income tax expense (46.9) (16.7)% (56.4) 25.3% (45.0) Income (loss) for continuing operations 66.9 72.8% 38.7 516.3% 6.3 Discontinued operations Income (loss) from discontinued operations — (100.0)% (9.5) (108.4)% 109.0 Net income 66.9 128.8% 29.2 (75.2)% 115.3 Attributable to Owners of the parent 63.5 88.1% 33.8 (68.0)% 105.5 Non-controlling interest 3.4 175.2% (4.5) (146.1)% 9.8

Year Ended December 31, 2017 Compared with Year Ended December 31, 2016

Revenue from Continuing Operations

Our revenue was U.S.$1,575.2 million for the year ended December 31, 2017, a 15.3% increase from U.S.$1,366.3 million for the year ended December 31, 2016. This increase in revenue of U.S.$208.8 million was principally due to the increase of U.S.$157.8 million in revenue from our operations in Argentina, an increase of U.S.$21.2 million in revenue from our operations in Armenia and an increase of U.S.$13.2 million in revenue from our operations in Italy.

Aeronautical revenue was U.S.$767.0 million for the year ended December 31, 2017, a 13.9% increase from U.S.$673.5 million for the year ended December 31, 2016. The increase in aeronautical revenue of U.S.$93.5 million was principally due to an increase of U.S.$63.4 million in Argentina, an increase of U.S.$7.4 million in Italy and an increase of U.S.$7.9 million in Armenia, in each case, as a reults of an increase in passenger traffic.

Commercial revenue was U.S.$555.5 million for the year ended December 31, 2017, a 6.4% increase from U.S.$522.2 million for the year ended December 31, 2016. The increase in commercial revenue of U.S.$33.3 million was principally due to an increase of U.S.$17.4 million in Argentina and an increase of U.S.$11.0 million in Armenia, in each case, as a result of the increase in passenger traffic.

Construction service revenue was U.S.$250.1 million for the year ended December 31, 2017, a 51.5% increase from the U.S.$165.1 million for the year ended December 31, 2016. The increase in construction service revenue of U.S.$85.0 million was principally due to an increase of U.S.$77.1 million in Argentina as a result of the increase in capital expenditures primarily derived from the remodeling of Hall B and the runway at the Ezeiza Airport, finalizing a new parking lot at Aeroparque Airport and the runway extension at the Tucuman Airport.

Other revenue was U.S.$2.5 million for the year ended December 31, 2017, a 54.8% decrease from the U.S.$5.6 million for the year ended December 31, 2016. 4, rue de la Grêve, L-1643 Luxembourg - +352 26 25 82 74 www.corporacionamericaairports.com 32

The sum of the revenues reported for each of our segments equals the total amount of consolidated revenues as per the statement of income.

Cost of Services from Continuing Operations

Cost of services increased 19.9% to U.S.$1,030.0 million for the year ended December 31, 2017 compared to U.S.$ 859.1 million for the year ended December 31, 2016. This increase in cost of services of U.S.$170.9 million was primarily due to increase in Argentina and Brazil.

The sum of the cost of services reported for each of our segments equals the total amount of consolidated cost of services as per the statement of income.

Gross Profit from Continuing Operations

Based on the above mentioned our gross profit increased by 7.5% to U.S.$545.2 million for the year ended December 31, 2017 compared to U.S.$507.3 million for the year ended December 31, 2016.

Selling, General and Administrative Expenses from Continuing Operations

Selling, general and administrative expenses increased 13.7% to U.S.$194.2 million for the year ended December 31, 2017 compared to U.S.$170.9 million for the year ended December 31, 2016. This increase of U.S.$23.3 million was primarily due to an increase of U.S.$11.8 million in Argentina and an increase of U.S.$4.2 million in unallocated companies.

The sum of the selling, general and administrative expenses reported for each of our segments equals the total amount of consolidated selling, general and administrative expenses as per the statement of income.

Impairment Loss from Continuing Operations

In the year ended December 31, 2017, we recorded an impairment gain of U.S.$3.1 million as a reversal of the impairment loss related to the value of the Natal Concession Agreement. In the year ended December 31, 2016, we recorder an impairment loss of U.S.$16.6 million in Brazil as a result of the write down of the value of the Natal Concession Agreement. See also Note 12 to our Audited Consolidated Financial Statements.

Other Operating Income from Continuing Operations

Our operating income increased by 17.8% to U.S.$20.0 million for the year ended December 31, 2017 compared to U.S.$16.9 million for the year ended December 31, 2016. The increase of U.S.$3.0 million was primarily due to an increase in other operating income in Argentina for which a significant portion is attributable to the 2.5% of total revenue that is required to be allocated to a trust for investment commitments for the airports under the AA2000 Concession Agreement. See “—The AA2000 Concession Agreement—Specific Allocation of Revenue,”

Other Operating Expenses from Continuing Operations

Other operating expenses decreased 1.3% to U.S.$4.8 million for the year ended December 31, 2017 compared to U.S.$4.9 million for the year ended December 31, 2016.

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Operating Income from Continuing Operations

As a result of the foregoing, our operating income increased by 11.3% to U.S.$369.1million for the year ended December 31, 2017, compared to U.S.$331.8 million for the year ended December 31, 2016.

Share of Loss in Associates from Continuing Operations

Our share of loss in associated companies increased 1,113.0% to U.S.$15.8 million for the year ended December 31, 2017 compared to U.S.$1.3 million for the year ended December 31, 2016. The increase of U.S.$14.5 million was primarily due to (i) an equity impairment in Peru of U.S.$5.9 million after the notification from the Government of Peru of unilateral termination of the concession for the construction and operation of the Cusco Airport in Peru (the “Kuntur Wasi Concession Agreement”), and (ii) a loss of U.S.$9.3 million derived from the equity investment of Aeropuertos Andinos del Peru S.A.

Adjusted Segment EBITDA

We evaluate the performance of each of our segments based on Adjusted Segment EBITDA which is defined, with respect to each segment, as income from continuing operations before financial income, financial loss, income tax expense, and depreciation and amortization for such segment. See “Presentation of Financial and Certain Other Information—Adjusted Segment EBITDA.”

Therefore, each segment’s Adjusted EBITDA measure equals the segment’s operating income plus the segment’s share of losses in associates plus the segment’s depreciation and amortization included in each segment’s cost of services and selling, general and administrative expenses, as further discussed in the respective sections above.

The sum of each segment’s Adjusted EBITDA equals the total consolidated Adjusted EBITDA. See “Presentation of Financial and Certain Other Information—Non-IFRS Information—Adjusted EBITDA.”

For the Year Ended December 31, 2017 2016 Change against % of Total prior year % Change % of Total (in millions Adjusted in millions against prior (in millions Adjusted of U.S.$ EBITDA of U.S.$ year of U.S.$ EBITDA Argentina 315.2 68.3% 21.1 7.2% 294.1 68.8% Italy 29.8 6.5% 2.5 9.1% 27.3 6.4% Brazil 16.8 3.6% 13.0 336.5% 3.8 0.9% Uruguay 55.2 12.0% 1.5 2.7% 53.7 12.6% Armenia 41.2 8.9% 13.1 46.6% 28.1 6.6% Ecuador 26.5 5.7% (1.5) (5.4)% 28.0 6.5% Unallocated (7.8) (1.7)% (0.3) 3.9% (7.5) (1.7)% Peru (15.3) (3.3)% (14.9) 3745.0% (0.4) (0.1)% Total segment EBITDA 461.6 100.0% 34.4 8.1% 427.2 100.0%

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Income before Financial Results and Income Tax from Continuing Operations

Our income before financial results and income tax increased by 6.9% to U.S.$353.3 million for the year ended December 31, 2017, compared to U.S.$330.5 million for the year ended December 31, 2016.

Financial Income from Continuing Operations

Our financial income increased 66.7% to U.S.$62.6 million for the year ended December 31, 2017, compared to financial income of U.S.$37.5 million for the year ended December 31, 2016. This increase of U.S.$25.0 million in financial income was primarily due to an increase in interest income in Argentina as consequence of the investments made with bonds funds.

Financial Loss from Continuing Operations

Our financial loss increased by 10.7% to U.S.$302.0 million for the year ended December 31, 2017, compared to financial loss of U.S.$273.0 million for the year ended December 31, 2016. This increase of U.S.$29.1 million in financial loss was primarily due to a loss of U.S.$(32.0) million in Argentina derived from an increase in interest income as a consequence of bond funds investments and the increase of the exchange rate of dollar against argentine peso.

Income before Income Tax from Continuing Operations

As a result of the foregoing, our income before income tax increased by 19.7% to U.S.$113.8 million for the year ended December 31, 2017, compared to U.S.$95.1 million for the year ended December 31, 2016.

Income Tax Expense from Continuing Operations

Income taxes were U.S.$46.9 million for the year ended December 31, 2017, a 16.7% decrease from the U.S.$56.4 million recorded for the year ended December 31, 2016. This U.S.$9.4 million decrease is primarily due to a decrease in income tax in Argentina.

Income from Continuing Operations

As a result of the foregoing factors, our income from continuing operations increased U.S.$28.2 million, or 72.8% to U.S.$66.9 million for the year ended December 31, 2017 compared to income from continuing operations of U.S.$38.7 million for the year ended December 31, 2016.

Net Income

Taking into account our income from continuing operations and our income (loss) from discontinued operations, our net income increased U.S.$37.7 million, or 128.8%, to U.S.$66.9 million for the year ended December 31, 2017 compared to income of U.S.$29.2 million for the year ended December 31, 2016.

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Cash Flows

Years ended December 31, 2017 and 2016

Operating Activities

The net cash used in operating activities was U.S.$49.4 million for the year ended December 31, 2017, a 128.6% or U.S.$222.2. million decrease as compared to U.S.$172.8 million in net cash provided by operating activities for the year ended December 31, 2016. Although we had a decrease in operating cash flows between December 31, 2017 and December 31, 2016, the Adjusted EBITDA for the year ended December 31, 2017 was U.S.$461.6 million, a 8.1% or U.S.$34.4 million increase, as compared to U.S.$ 427.2 million for the year ended December 31, 2016. This decrease in cash flows from operating activities was primarily due to (i) an increase of U.S.$75.6 million in capital expenditures related to infrastructure investments made in Argentina, (ii) an increase of U.S.$85.6 million in income tax paid during year ended December 31, 2017, principally in Argentina due to a higher income tax accrued in 2016 (paid during 2017) as compared to income tax accrued in 2015 (and paid during 2016) given the effect of a large devaluation of the Argentine peso against the U.S. dollar, (iii) a decrease of U.S.$56.9 million in Brazil primarily due to ICAB prepaying approximately 45% of the concession fees due in 2018 under the Brasilia Concession Agreement and the prepayment made by ICASGA of 100% of the concession fees due in 2018 under the Natal Concession Agreement, and (iv) a decrease of U.S.$4.1 million in various other operating cash flow categories.

Investing Activities

The net cash used in investing activities was U.S.$45.2 million for the year ended December 31, 2017, a 226.0% or U.S.$81.0 million decrease as compared to U.S.$35.8 million in net cash provided by investing activities for the year ended December 31, 2016. The increase in the net cash used in investing activities was primarily due to the net effect of (i) the increase of U.S.$48.8 million in acquisition of other financial assets primarily due to the investment of U.S.$23.5 million in term deposits in Ecuador and the purchase of U.S.$27.7 million in bonds by Corporación América Sudamericana S.A., (ii) the increase of U.S.$20.0 million in disposition of other financial assets primarily due to the release of U.S.$15.0 million of the debt services account in ACI Airports Sudamericana S.A., the increase in cash provided of U.S.$16.6 by the sale of bonds in Corporación América Sudamericana S.A. and the decrease of U.S.$9.4 million in cash provided by the release in 2016 of the time deposit in Ecuador, (iii) the decrease of U.S.$10.4 million in cash provided by the disposition in 2016 of discontinued operations principally related to the sale of Helport do Brasil S.A., America Lodging S.A. and Corona Trading Corp, (iv) an increase of U.S.$33.0 million in loans with related parties principally due to the increase of U.S.$13.4 million of the loan granted to Aeropuertos Andinos del Perú S.A. by Corporación América Airports S.A. and a decrease of U.S.$20.3 million in cash provided by the collection of related parties loans in 2016.

Financing Activities

The net cash provided by financing activities was U.S.$129.0 million for the year ended December 31, 2017, a 180.9% or U.S.$288.3 million increase as compared to U.S.$159.4 million in net cash used in financing activities for the year ended December 31, 2016. This increase in cash flows from financing activities was primarily due to the net effect of (i) the increase of U.S.$542.3 million in net proceeds from indebtedness principally due to the issuance of the Argentine Notes amounting to U.S.$388.4 million and the bank loans in Brazil amounting to U.S.$115.6 million, (ii) the increase of U.S.$107.6 million in loans paid primarily due to the 4, rue de la Grêve, L-1643 Luxembourg - +352 26 25 82 74 www.corporacionamericaairports.com 36

increase of U.S.$130.5 million in payments made in Argentina, (iii) the increase of U.S.$58.4 million in interest paid due to the increase of U.S.$19.3 million in payments made in Argentina, the increase of U.S.$18.6 million in payments made in Brazil and the increase of U.S.$13.6 million in payments made in ACI Airport Sudamerica, and (iv) the increase of U.S.$93.0 million in cash used due to the constitution of time deposit of CAAP in pledge of a loan of Inframérica Concessionária do Aeroporto de Brasilia S.A. with Banco Santander.

Employees

As of December 31, 2017, 2016 and 2015, we employed 6,102, 5,974 and 5,962 employees, respectively, of which 5,058, 4,910 and 4,880, respectively, worked on activities such as operations, maintenance, security, customer services, parking and charging of airport charges; and 1,044, 1,064 and 1,082, respectively, worked in sales and marketing, the finance sector, administration, human resources, legal department and other activities.

We have unionized employees in all of the jurisdictions in which we operate. As of December 31, 2017 and December 31, 2016, 66.8% and 54.0%, respectively, of our employees in Argentina were represented by two unions: (a) Union de Personal Civil de la Nación, and (b) Asociación de Personal Aeronáutico. The relationship between the unions and these employees is mainly governed by a collective bargaining agreement (CBA Nbr. 1,254/2011 “E”) between us and the unions, dated November 26, 2016. We negotiate this collective bargaining agreement, and the other labor agreement to which we are a party, on an annual basis. We have not experienced any significant labor conflicts during the last two years. We maintain a successful working relationship with each union’s delegates and representatives. See “Risk Factors—Risks Related to Our Business and Industry—The majority of our workforce is unionized and we may be subject to organized labor action, including work stoppages and litigation.”

In addition, as of December 31, 2017 and December 31, 2016, 377 and 358, respectively, of our employees in Italy (approximately 51.1% and 49.7%, respectively) are represented by transportation trade unions. In Italy, there are two levels of collective bargaining: the national employment contract, which every company is bound to apply, and the collective corporate contract. Prior to the merger that created TA in 2015, the collective corporate contract was agreed, which avoided certain liabilities in connection with the reduction in staff generated by the merger. Additional collective corporate contracts have been executed to address issues regarding operational efficiencies and reductions in operating costs.

As of December 31, 2017, 105 of our employees in Brazil (approximately 16%) are represented by the National Union of Airport Employees (Sindicato Nacional do Aeroportuarios). We have not experienced any significant collective conflicts during the last two years. We maintain a successful working relationship with each union’s delegates and representatives in Brazil.

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The following table provides information regarding the number of our employees as of December 31, 2017, December 31, 2016 and December 31, 2015:

Number of Employees

As of December 31,

2017 2016 2015 Operations and infrastructure 5,058 4,910 4,880 Administration 1,044 1,064 1,082 Total 6,102 5,974 5,962

Activities of research and development

There were no research and development expenses incurred.

Own shares

The Company has not repurchased any of its own shares during the year and does not hold any own shares at this time.

None of our directors, officers or members of our senior management owns any of our common shares.

Financial risk management

We are exposed to market risks arising from our normal business activities. These market risks principally involve the possibility that exchanges in exchange rates will adversely affect the value of our financial assets and liabilities, or future cash flows and earnings. Market risk is the potential loss arising from adverse changes in market rates and prices.

Exchange Rate Risk

Our primary foreign currency exposure gives rise to market risks associated with exchange rate movements of the Argentine peso, the Brazilian real, the euro, the Uruguayan peso and the Armenian dram against the U.S. dollar; and the Euro against the Armenian dram. We have liabilities in U.S. dollars that are exposed to foreign currency exchange rate risk. Because we borrow in the international markets to support our operations and investments, we are exposed to market risks from changes in foreign exchange rates.

As of December 31, 2017, our foreign currency-denominated borrowings amounted to an equivalent of U.S.$692.8 million, out of a total of U.S.$1,486 million. We do not hedge because a large percentage of our revenues are in U.S. dollars or linked to the U.S. dollar.

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Of our total revenue for the years ended December 31, 2017 and December 31, 2016, a substantial amount was in U.S. dollars or was linked to the U.S. dollar because, for example, the revenues are calculated as a percentage of the total revenues of duty-free and other subconcessionaires generated in U.S. dollars.

Our revenues that are substantially linked to U.S. dollars are generated from the following aeronautical services: international and regional use fees, international aircraft landing charges and international aircraft parking charges. In addition, our revenues that are substantially linked to U.S. dollars are generated primarily from the following commercial services, subconcessionaires and customers: duty free royalties, fueling, handling and cargo.

We have significant monetary balances held by our subsidiaries at the end of each fiscal year that are denominated in currencies other than the functional currency of such subsidiaries. The following table sets forth a breakdown of our main monetary net assets and liabilities which may impact our profit and loss:

Currency Exposure/Functional Currency

For the Year Ended December 31, 2017 2016 2015 (in thousands of U.S.$) U.S. dollar/Argentine peso (267,045) (131,284) (154,384) Real/U.S. dollar 90,697 - - U.S. dollar/Armenian dram (30,291) (54,016 (55,421) Euro/Armenian dram (50,939) (47,473) (51,952) Euro/U.S. dollar 1,535 283 3,162 Uruguayan peso/U.S. dollar 11 (1,853) (770)

In addition, we have certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. We do not enter into derivative financial instrument to cover foreign exchange risk. We manage foreign exchange risk by minimizing the net positions of assets and liabilities denominated in foreign currencies.

The relevant exposure by currency pair is set forth below in thousands of U.S. dollars:

Euro—U.S. dollar: As of December 31, 2017, 2016 and 2015, consisting primarily of euro-denominated net monetary assets and liabilities at certain Uruguayan subsidiaries and Luxembourg entities in which the functional currency was the U.S. dollar. A change of 1.0% in the euro—U.S.$ exchange rate would have generated a pre-tax gain/loss of U.S.$15.4 for the year ended December 31, 2017, U.S.$2.8 for the year ended December 31, 2016 and U.S.$31.6 for the year ended December 31, 2015.

Uruguayan peso—U.S. dollar: As of December 31, 2017, 2016 and 2015, consisting primarily of Uruguayan peso-denominated net monetary assets and liabilities at certain Uruguayan subsidiaries in which the functional currency was the U.S. dollar. A change of 1.0% in the URU$/U.S.$ exchange rate would have generated a pre-tax gain/loss of U.S.$0.1 for the year ended December 31, 2017, U.S.$18.5 for the year ended December 31, 2016 and U.S.$7.7 for the year ended December 31, 2015.

U.S. dollar—Argentine peso: As of December 31, 2017, 2016 and 2015, consisting primarily of U.S. dollar- denominated net monetary assets and liabilities at certain Argentine subsidiaries in which the functional currency was the Argentine peso. A change of 1.0% in the 4, rue de la Grêve, L-1643 Luxembourg - +352 26 25 82 74 www.corporacionamericaairports.com 39

AR$—U.S.$ exchange rate would have generated a pre-tax gain/loss of U.S.$2,670.5 for the year ended December 31, 2017, U.S.$1,312.8 for the year ended December 31, 2016 and U.S.$1,543.8 for the year ended December 31, 2015.

U.S. dollar —Armenian dram: As of December 31, 2017, 2016 and 2015, consisting primarily of U.S. dollar-denominated net monetary assets and liabilities at the Armenian subsidiary in which the functional currency was the Armenian dram. A change of 1.0% in the drams—U.S.$ exchange rate would have generated a pre-tax gain/loss of U.S.$302.9 for the year ended December 31, 2017, U.S.$540.2 for the year ended December 31, 2016 and U.S.$554.2 for the year ended December 31, 2015.

Euro—Armenian dram: As of December 31, 2017, 2016 and 2015, consisting primarily of euro-denominated net monetary assets and liabilities at the Armenian subsidiary in which the functional currency was the Armenian dram. A change of 1.0% in the euro-Armenian dram exchange rate would have generated a pre-tax gain/loss of U.S.$509.4 for the year ended December 31, 2017, U.S.$474.7 for the year ended December 31, 2016 and U.S.$519.5 for the year ended December 31, 2015.

Real / U.S. dollar

As of December 31, 2017 consisting primarily of Real-denominated net monetary asset at certain Brazilian subsidiaries which functional currency was the U.S. dollar. A change of 1% in the Real/ USD exchange rate would have generated a pre-tax gain / loss of U.S.$906.9 as of December 31, 2017.

Interest Rate Risk

Our interest rate risk arises from our financial borrowings. Borrowings issued at variable rates expose us to increases in interest expense when market interest rates increase, while the borrowings issued at a fixed rate expose us to fair value interest rate risk. We analyze our interest rate exposure on a dynamic basis, maintaining, pursuant to our general policy, most of our financial borrowings at a fixed rate.

We believe that a variation in the interest rates would not affect our results of operation since most of our consolidated financial and banking liabilities are tied to fixed interest rates.

The weighted average interest rate for our debt instruments denominated in Argentine pesos, euros and Brazilian reais was approximately 8.9% for the year ended December 31, 2017 and 10.5% for the year ended December 31, 2016. Our total borrowings with a variable rate amounted to U.S.$748.1 million (50.3% of total borrowings) in the aggregate at December 31, 2017, to U.S.$476.7 million (43.1% of total borrowings) in the aggregate at December 31, 2016 and to U.S.$391.5 million (36.0% of total borrowings) in the aggregate at December 31, 2015.

We estimate that, other factors being constant, a 10% increase in floating rates at year- end would decrease income before income tax expense for the years ended December 31, 2017, 2016 and 2015 by U.S.$3.8 million, U.S.$3.8 million and U.S.$0.5 million, respectively. A 10% decrease in the floating interest rate would have an equal and opposite effect.

Luxembourg, April 17th, 2018

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